ALBANY, N.Y.–New York Gov. Kathy Hochul today signed legislation into law that authorizes credit unions to participate in the Excelsior Linked Deposit.
The legislation had the strong support of the Empire State’s credit unions, with the New York Credit Union Association noting it has been a key legislative priority since 1997.
The Excelsior Linked Deposit Program was created in 1997 to assist small- and mid-size businesses in New York with expansions, modernizations, development and other investment projects. Through the program, eligible businesses can obtain commercial loans from authorized financial institutions at significantly reduced interest rates. Lenders are compensated with a deposit of state funds at comparably reduced rates, the NYCUA explained.
“New York credit union advocates worked assiduously and persistently on this issue over the course of more than two decades,” said NYCUA President/CEO William J. Mellin. “Now, after years of hard lobbying and advocacy efforts, this priority legislation has been signed into law. This is a massive victory for both credit unions and New York businesses.”
A ’Win-Win’
The NYCUA added that “significantly,” the new law allowing credit unions to participate in the program marks the first time New York state has been authorized to deposit public funds in credit unions.
“As we have stated for years, this new law is a ‘win-win’ for credit unions and New York businesses alike,” said Mellin. “With credit unions now eligible to participate in the Excelsior Linked Deposit Program, New York businesses seeking to expand and evolve will have more access to affordable financial solutions. Similarly, credit unions will be able to deepen their relationships with businesses in their communities and provide them with even more services.”
The legislation, A-5459/S-191, was introduced by Assemblywoman Taylor Darling, a Democrat from Hempstead and a member of the Assembly Economic Development Committee; and Sen. James Sanders Jr., a Democrat from Queens and Chairman of the Committee on Banks.